Paycom Software (NYSE:PAYC) Announces Earnings Results

Paycom Software (NYSE:PAYC) released its earnings results on Wednesday. The software maker reported $2.45 earnings per share for the quarter, topping the consensus estimate of $2.44 by $0.01, FiscalAI reports. The business had revenue of $517.10 million during the quarter, compared to the consensus estimate of $542.79 million. Paycom Software had a return on equity of 24.79% and a net margin of 22.65%.The business’s revenue for the quarter was up 10.2% compared to the same quarter last year. During the same period last year, the company earned $2.32 earnings per share.

Here are the key takeaways from Paycom Software’s conference call:

• Paycom reported strong 2025 results with total revenue of $2.05B (Q4 revenue $544M, recurring revenue up 11% in Q4) and full?year recurring revenue growth of 10%, driven by higher sales and automation efficiencies.
• Profitability and cash generation were robust — full?year Adjusted EBITDA of $882M (43% margin, +180 bps), operating cash flow of $679M (+27%), free cash flow of $404M (+20%), zero debt, and continued opportunistic buybacks ($370M repurchased in 2025 with ~$1.1B remaining authorization).
• Product automation adoption (IWant, Beti, GONE) is boosting client ROI and retention — annual revenue retention rose to 91%, Paycom saw a record number of returning clients, and IWant usage jumped ~80% in January, supporting upsell and stickiness.
• 2026 guidance is conservative vs. 2025 results — management expects total revenue of $2.175B–$2.195B (6%–7% growth) and recurring revenue up 7%–8%, signaling a near?term deceleration and reliance on sales execution and “inflection opportunities” to outpace the guide.
• Management invested heavily in 2025 CapEx (~$275M, ~13% of revenue) including ~ $100M for data center expansion to support AI/automation; this supports longer?term product differentiation but raised capital intensity for the year.

Paycom Software Price Performance

NYSE PAYC traded down $5.96 during trading on Wednesday, hitting $118.98. The company’s stock had a trading volume of 3,137,812 shares, compared to its average volume of 1,229,038. Paycom Software has a fifty-two week low of $116.83 and a fifty-two week high of $267.76. The company has a market cap of $6.69 billion, a PE ratio of 14.80, a P/E/G ratio of 1.36 and a beta of 0.79. The business’s 50 day simple moving average is $151.96 and its 200-day simple moving average is $185.32.

Paycom Software Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Monday, March 23rd. Shareholders of record on Monday, March 9th will be paid a $0.375 dividend. The ex-dividend date is Monday, March 9th. This represents a $1.50 dividend on an annualized basis and a yield of 1.3%. Paycom Software’s dividend payout ratio (DPR) is 18.66%.

Wall Street Analyst Weigh In

PAYC has been the subject of a number of research reports. KeyCorp lowered their price target on Paycom Software from $290.00 to $250.00 and set an “overweight” rating for the company in a report on Thursday, November 6th. Jefferies Financial Group decreased their target price on Paycom Software from $225.00 to $190.00 and set a “hold” rating for the company in a research report on Thursday, November 6th. UBS Group dropped their price target on Paycom Software from $245.00 to $210.00 and set a “buy” rating on the stock in a research report on Monday, January 26th. Citigroup lowered their price objective on shares of Paycom Software from $191.00 to $185.00 and set a “neutral” rating for the company in a research note on Tuesday, December 23rd. Finally, JPMorgan Chase & Co. dropped their target price on shares of Paycom Software from $235.00 to $220.00 and set a “neutral” rating on the stock in a report on Thursday, November 6th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, ten have given a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, Paycom Software has a consensus rating of “Hold” and an average price target of $202.86.

Key Stories Impacting Paycom Software

Here are the key news stories impacting Paycom Software this week:

• Positive Sentiment: Q4 EPS narrowly beat estimates (EPS $2.45 vs. $2.44 consensus), showing underlying profitability held up. Zacks: Paycom Q4 Earnings and Revenues Beat
• Positive Sentiment: The board declared a regular quarterly cash dividend of $0.375 per share (record March 9), which supports yield-oriented investors. Globe and Mail: Paycom Declares Quarterly Dividend
• Positive Sentiment: At least one shop (Guggenheim) remains constructive on Paycom as an oversold value opportunity, which could limit downside if sentiment stabilizes. InsiderMonkey: Guggenheim Bullish on Paycom
• Neutral Sentiment: Company filed its official quarter and year?end results (press release), which investors can review for full detail on margins and cash flow. BusinessWire: Paycom Q4 and Year?End Results
• Negative Sentiment: Revenue missed expectations materially (reported ~$517.1M vs. ~$542.8M consensus), a clear headwind for growth narratives and valuation. Quarterly Filing / Press Release
• Negative Sentiment: Management’s 2026 revenue guidance came in below Street expectations, triggering a sharp selloff as investors re?price growth; Reuters notes shares fell on the weak outlook. Reuters: Paycom Forecasts Weak 2026 Revenue
• Negative Sentiment: Market reaction pushed the stock to a new 52?week low amid elevated volume and negative momentum, amplifying downside risk in the near term. Investing.com: Paycom Hits 52?Week Low

Insider Activity

In related news, CFO Robert D. Foster sold 1,300 shares of Paycom Software stock in a transaction that occurred on Wednesday, December 10th. The shares were sold at an average price of $162.66, for a total value of $211,458.00. Following the completion of the sale, the chief financial officer directly owned 14,747 shares in the company, valued at $2,398,747.02. This trade represents a 8.10% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 10.90% of the stock is currently owned by company insiders.

Institutional Trading of Paycom Software

Several large investors have recently made changes to their positions in the business. CYBER HORNET ETFs LLC purchased a new position in shares of Paycom Software during the second quarter worth $29,000. Palisade Asset Management LLC acquired a new stake in Paycom Software during the 3rd quarter worth about $33,000. MUFG Securities EMEA plc acquired a new stake in Paycom Software during the 2nd quarter worth about $33,000. EverSource Wealth Advisors LLC raised its stake in shares of Paycom Software by 62.6% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 304 shares of the software maker’s stock valued at $70,000 after buying an additional 117 shares during the last quarter. Finally, Zions Bancorporation National Association UT lifted its holdings in shares of Paycom Software by 4,210.5% in the 4th quarter. Zions Bancorporation National Association UT now owns 819 shares of the software maker’s stock valued at $131,000 after buying an additional 800 shares during the period. 87.77% of the stock is owned by hedge funds and other institutional investors.

Paycom Software Company Profile

Paycom Software, Inc (NYSE: PAYC) is a cloud-based human capital management (HCM) software provider that delivers an end-to-end solution for human resources, payroll, talent acquisition, time and labor management, and talent management. Its single-database platform enables organizations to process payroll, track time, administer benefits, and manage recruiting and employee development through a unified system. Paycom’s software is designed to streamline administrative tasks, improve data accuracy, and provide real-time reporting and analytics to support strategic HR decisions.

The company’s core offerings include payroll processing with built-in tax compliance, employee self-service functionality, automated time tracking, and customizable talent acquisition tools that allow employers to create and post job requisitions, screen candidates, and conduct onboarding electronically.